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August 7, 2009
403(b) Filing Relief
On July 20, 2009, the Department of Labor issuedField Assistance Bulletin (FAB) 2009-02, providing some welcome relief to 403(b) plans. Many 403(b) plans are now subject to the Form 5500 annual filing requirement. One of the outstanding questions has been, How will the plan sponsor gather information relating to contracts over which the employer has no authority or discretion?
Red Flags Rules: Delayed in Part, Explained in Part
In 2007, Congress enacted the Fair and Accurate Credit Transactions Act of 2003 (FACTA), a part of which is a component known as the Federal “Red Flags Rule”. These Rules apply to financial institutions and creditors, and requires such entities to establish a written identity theft prevention program. This law is intended to reduce identity theft, and the damage caused thereby, by having affected institutions keep a close eye on such matters. The identity theft program is intended to detect the warning signs of identity theft, and thereby, to prevent or reduce identity theft.
CMS Clarifies Medicare Mandatory Reporting Requirement for HRAs
CMS has clarified, by way of theirUser Guide, that they consider health reimbursement arrangements (HRAs) to be a group health plan, for purposes of the Medicare Secondary Payor rules; and thus, subject to the Medicare Mandatory Reporting Requirement. Responsible reporting entities (“RREs”) of HRAs do not need to register with CMS at this time. HRA data will not be collected for reporting until after October 1, 2010. HRA-only RREs must register with CMS by May 1, 2010 to allow enough time for testing to be completed before production files are due.
July 8, 2009
Qualified Plan Compliance Tools Available
If an effort to assist qualified plan sponsors in their compliance efforts, the IRS’s Employee Plan Team Audit (EPTA) division has several new tools on its website:
401(k) Safe Harbor Plans: Limited Relief
Generally, 401(k) safe harbor plans that include a nonelective contribution provision cannot reduce or suspend the nonelective contributions mid-plan year. In May, 2009, the IRS issued proposed regulations to allow nonelective contributions to be reduced or suspended mid-year, if certain conditions are met. These regulations are in response the economic times in which we find ourselves.
ARRA’s COBRA Subsidy: Further Guidance
On June 3, 2009, the IRS issued additional Q&As relating to the COBRA subsidy. Following are hi-lights of these Q&As:
June 8, 2009
COBRA Subsidy Appeals Process Established
If an individual’s request to be treated as a COBRA-subsidy eligible individual is denied (see prior Benefit Beat articles: COBRA Subsidy Guidance from the IRS and COBRA Subsidy - Information Support), then he/she may request a review of the denial from the Department of Labor. One can obtain information and apply for the review of the denial via the DOL’s website. If the continuation coverage is provided through a federal, state or local government plan, or provided in accordance with a state’s mini-COBRA law, then the individual should direct their request for review of the denial to the Department of Health and Human Services.
Health Savings Accounts: 2010 Cost of Living Adjustments
In Rev Proc 2009-29, the IRS released 2010 cost of living adjustments for health savings accounts. Following are annual deductible amounts for a high deductible health plan (HDHP) used in conjunction with a health savings account (HSA), and limits for out-of pocket expenses and contributions for both 2009 and 2010.
California’s Same-sex Marriage Ban Upheld
In May, 2008, a California Supreme Court decision sanctioned same-sex marriages. The Court’s decision was subsequently challenged on the grounds that it conflicted with the California Constitution that only permits a marriage between one man and one woman.
Health Risk Assessments: Where Do They Stand?
One of the tools commonly used in a wellness program is a health risk assessment. A health risk assessment can take many forms. Generally, it involves the collection of personal medical information, which may include family medical history and genetic information. The purpose of the information collection is generally to target medical conditions that an individual may have, or may be predisposed to have; the goal being, of course, to address the condition before it gets out of hand.